Home / Knowledge / News / Textiles / CEPEA/ESALQ cotton index soars in January

CEPEA/ESALQ cotton index soars in January

03
Feb '11
On Jan. 24, cotton prices hit a new record in the Brazilian market and at New York Board of Trade (ICE Futures). The Center for Advanced Studies on Applied Economics - CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, payment in 8 days) reached 3.4862 reais or 2.0850 dollars per pound, the highest real value (deflated by IGP-DI December/10) since Cepea data began, in June 1996. The previous record, also considering deflated values, was registered in mid-January 2004.

In late January, cotton prices in both Brazilian (CEPEA/ESALQ Index) and international markets (ICE Futures and Cotlook A) remained hitting new records in real terms (IGP-DI December/10).

The 2009/10 season has ended with the lowest stock/consumption ratio over the last 15 years, which reflects a slight reduction of the world supply and a fast increase of the demand in that period. The harvest of the next Brazilian crop will start in June and might pour into the market 54% more of the product compared to the previous season, according to data from Conab (National Company for Food Supply). In world terms, the increase is forecast to reach 13.7%, according to USDA.

In the accumulated of January, the CEPEA/ESALQ Index for cotton type 41-4 (delivered in São Paulo city, payment in 8 days) edged up a whopping 23%, closing at 3.5830 reais or 2.1403 dollars per pound on Jan. 31.

Liquidity was not expressive in that period, however, the firm position of producers regarding the low availability of cotton for prompt-delivery underpins quotes. Some cotton growers are focused on the second crop of cotton, which is delayed due to the excess of rains that jeopardizes the soy harvest.

In this scenario, dealers, operating as sellers, have been willing to trade and are taking advantage of current high prices to sell the stocked product. Only a few sellers are flexible in terms of values. Industries, in turn, purchase the product only for immediate needs. In many cases, trades are limited by the difficulties to find batches of higher quality cotton.

CEPEA - Center for Advanced Studies on Applied Economics


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Abhimanyu Singh Rathore & Barbara Anna Kosiorek, Kannbar

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Italtex,

Italtex

Italtex is a leading studio publishing fabric trend-books since 1959....

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Lukas Hartmann,

Lukas Hartmann

Intex Consulting GmbH is a completely integrated enterprise resource...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search